One thing I just discovered, is that you can click on the checkmark listed in the placements to disable a placement. It wasn't obvious to me that was a clickable element. That can be very handy for an end user to disable any particular placements that they don't wish to see (like Assignment and Link Selection)
Based on a typical Canvas install, it seems most devs don't disable this, so the Assignments external link look up is usually VERY full. You could clean this up by going through the Apps list and disable all Assignment and Link Selection placements by clicking the checkbox and saving for each one. Sounds like it's similar to what @chriscas was doing through the API.
If you ARE an external tool developer, you likely would want to configure your XML code to include
<lticm:property name="not_selectable">True</lticm:property>
at the same XML level as the "privacy_level".
That will disable that from showing up in Assignment and Link Selection by default when creating the LTI.
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